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May 27, 2017

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MediaTek's chairman feels confident concerning future

TAIPEI -- MediaTek Inc. (聯發科) Chairman and CEO Tsai Ming-kai (蔡明介) said Wednesday at COMPUTEX Taipei that he thinks the Taiwanese chip designer will survive in the mobile chip industry despite a likely market consolidation.

In an interview with reporters at Asia's biggest trade show, Tsai said MediaTek has received many order inquiries from its major customers since chip-maker Broadcom Corp. disclosed June 2 that it was looking to drop its cellular baseband business.

The decision by Broadcom, a supplier of Wi-Fi and Bluetooth technology to Apple Inc., means MediaTek is viewed by its customers as one of the last two or three chip-makers that will survive a likely consolidation of the competitive market, Tsai said.

"Whether it's two or three companies that survive, we are confident that we will be among them and will play quite a big role," Tsai said.

He however declined to project MediaTek's market share in the scenario he described or to comment on local news reports that the company plans buy Broadcom's cellular baseband business.

Tsai said MediaTek's 4G LTE chip solutions have cleared tests by Vodafone Group PLC, Europe's largest wireless carrier, laying the groundwork for the Taiwanese company to expand into more markets in Europe and the United States.

At COMPUTEX Taipei on Tuesday, the Hsinchu-based chip designer launched a hardware and software development platform called "LinkIt," with the aim of accelerating the wearable device and Internet of Things (IoT) markets.

The LinkIt platform integrates MediaTek's Aster system-on-chip (SoC), the smallest wearable SoC currently on the market, which is designed to enable developers to create a broad range of affordable IoT products and solutions, according to MediaTek.

MediaTek shares closed down 0.30 percent at NT$490.50 (US$16.33) Wednesday in Taipei trading.

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